The FTC Consumer Review Rule: 7 Practices Online Sellers Should Drop

The FTC Consumer Review Rule bans fake reviews, rewards that depend on a positive rating, undisclosed reviews by staff or family, and hiding negative reviews to make a product look better. It applies to every business, including small online stores. Civil penalties can reach $53,088 per violation, so check your review habits before the holiday rush.

I ran an online stationery shop for seven years, across my own site and two marketplaces. Reviews were the thing customers read most and the thing I worried about least. Plenty of habits that felt like normal hustle back then would now sit squarely inside this rule.

This list is for owners of small online stores and marketplace sellers. It covers seven review practices to drop, what the Federal Trade Commission (FTC) has done so far, and what you can still do to collect more honest reviews. It reflects the rule and FTC guidance as of October 2026. It is not legal advice, so take specific questions to a lawyer.

Why Is the FTC Enforcing the Consumer Review Rule Now?

Because the warning period is over. The rule took effect on October 21, 2024. In December 2025, FTC staff sent warning letters to 10 companies. In May 2026, the agency brought its first case alleging fake reviews under the rule. Each step has made clear that small businesses are covered too.

The FTC's December 22 press release on the warning letters did not name the companies. It listed the practices the letters covered, from fake reviews to suppressing reviews on company-controlled websites. It also warned that violations can lead to a federal lawsuit and civil penalties of up to $53,088 per violation.

Then came the first case. In May 2026, the FTC and the state of Illinois took action against a Chicago company and its owner. According to the FTC's announcement of the Premium Home Service case, the company created thousands of listings for fake home repair businesses. It allegedly posted made-up five-star reviews to drown out real one-star reviews.

1. Writing or Buying Fake Reviews

This is the core of the rule. You cannot write reviews yourself under made-up names, pay someone to write them, or buy them in bulk. That covers reviews that misrepresent whether the reviewer had a positive or negative experience, or whether they used the product at all.

AI does not change the answer. FTC staff guidance says using AI to create fake consumer reviews would break the rule. A generated review that pretends to come from a real buyer is still a fake review.

2. Rewarding Only Positive Reviews

You can offer something in return for a review. You cannot make the reward depend on what the review says. The FTC's questions and answers on the Consumer Review Rule give a clear example of a bad request. It is a coupon offered to customers who say how much they loved their visit.

The wording is where most small shops slip. "Leave us a 5-star review for 10% off" breaks the rule. "Leave an honest review and get 10% off your next order" does not. The FTC also notes that failing to disclose an incentive can still be a problem under the wider FTC Act, so mention it where the reviews appear.

Check the printed inserts in your parcels too. Many small shops still drop a card in the box offering a discount for a review. Reprint any that ask for five stars, and keep the offer the same for every honest review.

3. Hiding or Deleting Bad Reviews

Your own website is where the temptation is strongest. The rule bars misrepresenting that the reviews you show are all or most of the reviews you received, when you have left some out because they were negative.

You can still moderate. FTC guidance says you can refuse a review that is about the wrong business, for example. You can also leave out reviews that only discuss customer service, as long as you do it for good and bad reviews alike.

The practical fix is a written moderation policy. When I finally wrote one for my shop, it was half a page. It listed what we removed, such as abuse or reviews of a different product, and it applied to five-star and one-star reviews in the same way.

4. Asking Only Happy Customers to Post

This one is subtler. Some review tools send a short survey first, then invite only the customers who answered well to post a public review. The practice is often called review gating.

FTC staff say the rule itself has no specific ban on asking only happy customers. They also say the practice could still violate the FTC Act. My view is that it is not worth the risk for a small shop. Send the same review request to every customer and let the ratings land where they land.

5. Staff and Family Reviews Without a Disclosure

Your employees and relatives probably love your products. If they post reviews, the rule requires a clear and conspicuous disclosure of their connection to your business. The FTC press release lists undisclosed reviews by company insiders or their immediate relatives among the practices covered.

The FTC guidance offers one useful safe harbor. If you send a general review request to all recent customers, and an employee who happens to be a customer posts without disclosing, you are not liable as long as you did not ask that employee to review. What you cannot do is ask staff to review your products and stay silent about who they are.

In a small team, the simplest rule is a short line in your staff handbook. Anyone who reviews a company product says they work there.

6. Running Your Own "Independent" Review Site

Some sellers set up a comparison or review website that looks neutral but is really controlled by the company. The rule bars misrepresenting a website as independent when it is not. If you own or control a review page, say so plainly on the page.

The same thinking applies to affiliate "best of" lists you pay for. If the ranking depends on payment, readers deserve to know.

7. Buying Followers or Fake Engagement

The rule also covers fake indicators of social media influence, such as bought followers, likes or views. The FTC lists them alongside fake reviews because they do the same job. They make a brand look more popular than it is.

For a small shop this is easy to avoid. Do not buy followers, and treat any service that promises them cheaply as a red flag.

Marketplace Listings Are Covered Too

Many small sellers assume the marketplace handles all of this. It does not. FTC staff guidance says the rule applies whether reviews appear on your own website or on third-party platforms. A fake review you arrange on a marketplace listing is your problem, not just the platform's.

Read your marketplace's own seller policies on review requests as well, because they can be stricter than the FTC's. The safe approach on a marketplace is to use the platform's built-in review request tools and nothing else.

There is one thing the rule does not make you responsible for. If you simply host reviews that customers submit, without writing, buying or steering them, the hosting itself is not the violation. The trouble starts when you shape what gets posted.

What You Can Still Do to Get More Reviews

The rule does not stop you from asking. The FTC's business blog post on the warning letters makes the point that businesses can ask all customers for feedback. They can also offer incentives that do not depend on the rating.

These are the habits that worked best in my own shop, and all of them fit the rule:

Timing matters more than usual this season. Holiday parcels take longer to arrive, so push your review emails back a few days. Our guide to 2026 USPS holiday surcharges also explains what peak shipping will add to your costs.

If you sell through marketplaces and payment apps, review your tax paperwork while you tidy up your listings. Our explainer on the new 1099 thresholds covers the $20,000 line for Form 1099-K.

A Quick Review Audit Before the Holidays

The Consumer Review Rule asks for honesty more than paperwork. Do not fake reviews, do not pay only for praise, disclose insiders, and moderate the same way for every rating. The FTC has shown it will act, and it has not exempted small sellers.

Spend an hour this week on a quick audit. Read your review request emails, check the wording of any incentive, and write a short moderation policy. Then send the same honest request to every customer this season.